Nasdaq 100 & Dow Jones Price Outlook:
- The Nasdaq[1] 100 pressed to new heights yet again this week as it followed Asian equities higher
- The Dow Jones[2] remains a laggard, but enjoys nearby technical support nonetheless
- Will a broader rally in equity markets help extend gains enjoyed by the Nasdaq 100 and Dow Jones?
Nasdaq 100 & Dow Jones Forecast: Are Stocks in for Another Leg Higher?
In an unusual turn of events, Asian equities appeared to be the driving force behind early stock gains this week as the Hang Seng index broke above a key technical barrier[3]. Bullishness from the session transitioned into early strength for US indices which was then exacerbated by uplifting ISM services data, which culminated in a stellar performance for the Nasdaq 100. The events allowed for the tech-heavy index to forge yet another record high, but unlike recent weeks, it would seem demand for the market’s largest and most popular tech stocks was not the initial catalyst – a key shift in investor attitude.
To that end, continued demand in other markets and regions could help prolong the US stock rally just as signs of weakness were beginning to show. Since I have long been critical of current equity valuations in the United States, it will be interesting to see if other indices begin to outpace the Nasdaq 100, Dow Jones and S&P 500[4] or if bullishness in other areas will fuel further exuberance in the three major US indices. Either way, widespread demand for equity exposure is an encouraging development, particularly when combined with some of the positive data readings emerging from various countries.
Nasdaq 100 Technical Outlook
In the case of the Nasdaq 100, little has changed from a
